FirstEnergy: Dividend cut to provide 'flexibility'

First Energy has cut dividends to 36 cents per share, down from the 55 cent dividend that has been in place since 2008, the company announced Tuesday.

Comment

By GateHouse Ohio Media

The Repository

By GateHouse Ohio Media

Posted Jan. 22, 2014 at 10:29 PM

By GateHouse Ohio Media
Posted Jan. 22, 2014 at 10:29 PM

First Energy has cut dividends to 36 cents per share, down from the 55 cent dividend that has been in place since 2008, the company announced Tuesday.

The revised divided rate equals an annual dividend of $1.44 per share, down from an annual rate of $2.20 per share.

The dividend will be payable March 1 to shareholders of record on Feb. 7.

"The dividend change is expected to preserve a solid and sustainable payment for our shareholders," said President and CEO Anthony J. Alexander in a news release. "The revised dividend also provides our company with additional financial flexibility to pursue regulated growth opportunities over the next several years."

The new divided rate is supported by expected earnings from the company's regulated distribution and transmission businesses and reflects a 58 percent payout of expected regulated operating earnings, according to the release.

FirstEnergy announced operating earnings guidance of $2.45 to $2.85 per share for 2014. The company narrowed 2013 operating earnings guidance to $2.95 to $3.05 per share from $2.90 to $3.10 pre share.